Remaking Singapore

SBM-ITB

Group 2:

Irawan Dwi S.
Muhammad Kusmianto
Deni Irawan
Hendra Heriawan
Bagus Yudhanto
Indra Catur
Hotma P.R. Sijabat
Fitria Andriani

KESDM

3. Why did Prime Minister Goh put

forward the Next Lap plan in 1991
Singapore learned from the recession in
1985 when sharp rise in unemployment,
weak external demand, low profits and
much reduced investment in manufacturing
happened
So government could safeguards their
interest and protect financial reserved so
that they could invest and engage all that
money into development of the Nation.
Achieving a U.S.-Level per-capita standard
of living by 2030.
Executive MBA in Energy Management

4.Why did the Economic Review Committee

(ERC) modify the next Lap Strategy in
2003 ? How was Singapore able to continue
its success?

The Singaporean government had initially viewed shocks as a

temporary cyclical problems, signs were mounting that more
fundamental economic restructuring was needed.
The ERC reports concluded that Singapore successful growth
model of the past twenty years was not going to be sufficient in
the future.
Singaporean goverment implemented a number of
policy
initiatives (Next Lap):
1. EDB set the goal of attracting 500 world class companies to
carry out HQ activities by 2010.
2. PSB was formed to identify and nurture promising SMEs to
become Asian MNCs.
3. The Thinking school, Learning Nation program was launched
to transform education system.
4. Research centers and advanced training programs were
launced in a number of areas (development of IT2000)

Executive MBA in Energy Management

4.Why did the Economic Review Committee

(ERC) modify the next Lap Strategy in
2003 ? How was Singapore able to continue
its success?
Short term adjustments (from ERC) to improve the relative cost
position of companies
CPF was cut to 13%, and even 9% for older worker
Monthly salary cap for computing reduced from S$6,000 to
S$4,500
Rental rates for government owned industrial space were lowered
Government related fees were frozen and fee increases deffered
Taxes were shifted to goods and services tax, similar to VAT
In 2004, foreign sourced income and domestic investment income
from financial instruments were exempted from tax
In 2005, the corporate tax rate was reduced to 20%
Long term adjustments
Expanding economic ties with countries in the wider region
(spanning India, China, Japan, and Australia) to enhance
Singapores regional hub status
Promoting new export industries in education, healthcare and
professional services
Building stronger private companies through promoting
entrepreneurship
Attracting global talent
Executive
MBA ineconomic
Energy Management
Facilitating
restructuring through worker4 education and 4

THANK YOU

Executive MBA in Energy Management